On January 21, 2014, a plane flew over the Bombardier plant in Montreal, Quebec, Canada. REUTERS/Christinne Muschi/File Photo

Reuters, October 28-Bombardier (BBDb.TO) and rival Textron Corporation (TXT.N) reported on Thursday that the backlog of business jets continues to increase as demand for private flights soars, but executives warn , There will be problems in the supply chain.

Executives from both companies told analysts that they have seen an increase in business jet activity in Europe, which has increased strong demand in the United States, which is filling seats and pushing up aircraft after the decline in orders due to COVID-19 last year price.

Cessna business jet manufacturer Textron raised its full-year earnings per share and cash guidance after General Dynamics (GD.N) said on Wednesday that its Gulfstream business jet backlog reached a six-year high. read more

Business jet manufacturers eager to take advantage of strong demand are taking measures to mitigate the effects of disruptions in the global supply chain, including the supply and pricing of raw materials, logistics, and labor shortages among small suppliers. read more

European aircraft manufacturer Airbus (AIR.PA) also pointed to supply chain issues on Thursday. read more

Bombardier CEO Eric Martel said that although Bombardier did not experience any assembly line disruptions, the business jet manufacturer is taking steps to deploy more employees to the supplier’s site, “to maintain clear visibility sex".

Montreal-based Bombardier suffered a small loss in the third quarter, basically in line with analysts’ estimates, and generated US$100 million in free cash from operations. This indicator was closely watched by investors and reversed last year’s negative usage. read more

Bombardier’s backlog of orders increased by approximately US$500 million to reach US$11.2 billion, while Textron Aviation reported a backlog of US$3.5 billion at the end of the quarter, an increase of US$1.9 billion from the beginning of the year.

Textron stated that the company is increasing its business jet manufacturing and aims to reach the production level in 2019. Bombardier has not announced any rate changes while balancing supply chain capacity, demand and pricing.

Bombardier recently launched a high-end variant of the Challenger 350 business jet to protect its dominant mid-size market share. read more

Mattel said that the two new large-cabin models recently announced by Gulfstream will not threaten the Challenger series.

"I think our competitors are now just positioning themselves at the top of this segment, leaving a lot of room for us in the mid-size segment," he said.

Mattel told reporters later in the day that Bombardier was still considering the area under its largest cabin, the global jet, as a potential renewal area.

He said: "We now have a major market segment that has not been fully utilized and developed."

Bombardier’s adjusted net loss per share for the quarter was 4 cents, compared with a loss of 9 cents per share in the same period last year. According to Refinitiv, analysts expect a loss of 5 cents per share.

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